Beyond quota, emerging capacity test for local content

Ekpo

For years, the success of Nigerian Local Content has been presented through numbers – the proportion of Nigerian workers on projects, the share of contracts awarded to indigenous companies, the growth of local service providers and the increasing presence of Nigerian professionals across the petroleum value chain. Those gains are real but they conceal a more relevant question that the industry can no longer postpone, WALIAT MUSA reports.

Nigeria’s local content policy is approaching a more difficult stage of its evolution. The question is no longer whether Nigerians are participating in the oil and gas industry; they are. The harder question is whether that participation is translating into the depth of technical, managerial and commercial capability required to control more of the industry’s value.

That distinction matters as the petroleum sector enters another period of structural change. The Petroleum Industry Act (PIA) has altered the regulatory framework; the Decade of Gas is pushing new investment and infrastructure, while digitalisation, automation, artificial intelligence and the energy transition are changing the competencies required across the value chain.

In other words, the industry is changing faster than the old definition of local content.

How much of the expertise behind the industry is actually Nigerian? That question is becoming more consequential as the petroleum sector enters a new phase when the value of a project will depend increasingly on specialised engineering, digital systems, advanced data analysis, artificial intelligence, automation, commercial sophistication and the ability to manage technologies that are evolving faster than conventional training systems.

The distinction matters because an industry can become more Nigerian in its workforce without becoming substantially more Nigerian in its intellectual and technological control which is the tension now confronting the sector.

At the Human Capacity Development Conference of the Oil and Gas Trainers Association of Nigeria (OGTAN) in Warri, the issue surfaced not as another appeal for more training, but as a challenge to the way Nigeria has traditionally thought about workforce development and local content.

The difficulty is that the architecture of local content has understandably been built around measurable participation. Percentages are easy to monitor, employment numbers can be counted, contracts can be tracked and procurement can be audited.

It takes years to build, is difficult to quantify and is often only visible when a company or professional is confronted with a complex problem that has no standard answer.

But if capability is not measured, it can remain hidden behind impressive participation statistics.

Chief Human Resources Officer of NNPC Limited, Kazachiyang Nuhu, identified an ageing workforce, brain drain and a widening disconnect between what academia produces and what industry requires from workers on day one.

Nuhu recognises this distinction as it proposes a movement from quotas to capability, from attendance to assurance, from certificates to verified competencies and from classroom hours to measurable workplace outcomes.

He asks the industry to look beyond the nationality of the workforce and examine where the critical knowledge resides. Who can design the system? Who can diagnose the failure? Who can optimise the asset? Who can manage the technological risk? Who can negotiate the complex commercial structure? And who can lead the project without relying indefinitely on external expertise? Those questions expose the difference between local participation and local capability.

The urgency becomes clearer when the transformation underway in the industry is considered. Nigeria is simultaneously pursuing greater gas utilisation, new investments, expanding processing and distribution infrastructure and a broader energy transition. At the same time, the technology used across energy operations is becoming more sophisticated.

He, however, identified four emerging capability frontiers: technical, digital, commercial and human. They include renewables integration, gas-to-power, methane management, AI in operations, predictive maintenance, cyber-resilience, data-driven decision-making, energy economics, carbon markets, ESG reporting, sustainable finance, adaptive leadership and systems thinking.

The country is not simply required to replace petroleum engineers who retire or leave the country. It must produce professionals capable of operating in an industry where petroleum expertise increasingly intersects with computing, data, finance, environmental management and advanced industrial technology.

That makes the familiar distinction between “technical” and “non-technical” skills increasingly artificial. A modern energy project can fail because of an engineering problem; it can also fail because of poor data, weak cybersecurity, inadequate project finance, inefficient commercial structures or poor understanding of emissions requirements.

The capability required to compete has therefore become broader even as the technical specialisation within individual disciplines has become deeper.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stressed that the ‘Decade of Gas’ ws intended to support industrialisation, energy access, investment and economic growth.

But the more consequential point was that infrastructure alone cannot deliver those ambitions. As the gas industry expands, Nigeria will need people capable of designing, financing, constructing, operating and maintaining the infrastructure being developed.

“Infrastructure creates opportunity, but human capacity converts opportunity into sustainable value. The true measure of training is not the number of courses attended or certificates issued,” he said.

That takes the human-capital question beyond conventional petroleum engineering. The NNPC assessment identifies emerging capability requirements spanning four broad frontiers: technical, digital, commercial and human. These include renewables integration, gas-to-power, methane management, AI in operations, predictive maintenance, cyber-resilience, data-driven decision-making, energy economics, carbon markets, ESG reporting, sustainable finance, adaptive leadership and systems thinking.

The issue is not simply whether universities and training institutions can produce more graduates. It is whether they can produce professionals whose skills match an industry that is becoming simultaneously more specialised and more technologically integrated.

A petroleum professional of the next decade may need to understand not only reservoirs and production systems but also data, automation, emissions, cybersecurity, commercial risk and new financing models.

The training ecosystem cannot remain static while the industry changes around it.

Delta State’s Commissioner for Oil and Gas, Peter Uviejitobor, highlighted investments under the MORE Agenda in technical colleges, vocational education, innovation hubs and entrepreneurship programmes.

The objective, as presented, is not simply education for its own sake, but industrially relevant competencies capable of improving employability, supporting indigenous participation and positioning Delta for energy, manufacturing and technology-driven enterprises.

He noted that if universities and technical institutions produce graduates who require substantial retraining before they can perform effectively, industry carries the cost of a broken pipeline. If the curriculum does not evolve with technology, the workforce enters the market already behind the industry it is supposed to serve.

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